News updates

An Nahar newspaper published a report about shoe confection in Bint Jbeil which has been a feature of this region since 1920 and reached its climax in the seventies.  This industry started to decline in the late nineties because of the security and economic conditions namely the Israeli occupation and the overall economic situation of Lebanon.  The report noted that large industrialists of the region set up 8 major factories in the eighties each of which employing 15 to 20 workers. Furthermore, some 85 smaller workshops existed and provided livelihoods to some 350 additional families.  As such, some 3500 pairs of shoes were produced daily and were marketed locally and in African and GCC countries including Kuwait.  This industry started declining in the nineties which led to the closure of many workshops.  This situation remained as such until the July 2006 war when the Israeli aggression destroyed the old souks that hosted most of the production units.  After the old souks were rebuilt, only 2 factories and 6 workshops reopened employing only 100 workers with a daily production of some 200 pairs which are seasonally marketed.
The report concluded by noting that those involved in this sector do not foresee a hopeful future and thus they agree that this trade is threatened with extinction. They added that supporting shoe-making is first their responsibility and that they should organize in a syndicate to demand their rights as well as improve their skills through training.  They also called for the creation of a cooperative which would facilitate the purchase of raw material at a lower price and without middlemen.  They also emphasized that the state has a responsibility to protect local production from foreign completion as well as find new external markets.
Source: Al-Nahar 24 October 2014

Professor Shogik Kasparian presented the findings of the study entitled “Emigrants’ financial contribution and its influence on the livelihoods in Lebanon” which was prepared by the Observatory of Socio-economic Reality at the Saint Joseph University.  The presentation of the findings, which was held last week at the Humanities campus, is largely the outcome of a survey carried out in 2012 based on a random sample of some 2000 households drawn from different parts of Lebanon.  The study noted that 55% of emigrants send remittances to their families, of whom, 25% do so on a regular basis.  The study also showed that 61.4% of families use these transfers for food expenses whilst 58.9% use them for accommodation expenses.
The study also included personal information drawn from the data of 7471 individuals and 3356 emigrants from these families. The study was categorized into 4 pillars, namely: 1) household characteristics and people who receive financial transfers, 2) emigrants and factors determining remittances to their families, 3) the impact of remittances of the livelihoods of recipient families, and 4) the impact of these remittances on families’ income and expenditure.  Kasparian noted in her presentation that small families are those who receive financial transfers most and its members are older with a higher percentage of women as well as a higher percentage of women headed households.  Kasparian also added that the proportion of women university graduates in families that receive remittances is higher than in those who do not.  The study also noted that men constitute a high proportion of emigrants but with an increasing trend of women emigrants as well, and while 62% of emigrant men send financial transfers to their families only 42% of women do so. Finally, and according to An Nahar, who covered this event, there was a noticeable absence of official presence or Ministries’ representation in this event notably the Ministry of Foreign Affairs.
Source: Al-Nahar 24 October 2014

The National Cooperative Federation of Milk producers in Lebanon rejected the request of Lebanese dairy factories to reduce the price of 1 kilogram of milk by LBP 100, knowing that the price of 1 Kg of milk is set at LBP 1150, according to a previous tripartite agreement between the Ministry of Agriculture, milk producers and factory owners.  This position was announced in a statement issued by the federation following its meeting in Zahleh last week during which it warned of further escalation in their actions if the Ministry does not intervene to withhold the unfounded demand taken by factory owners.  The Federation noted that the unit price of milk is principally dictated by the price of feedstock which has risen significantly.  The organisation also demanded limiting the large quantity of milk powder currently existing in the market, and allowing UHT imports so that factories can start new production lines, strengthening the role of relevant Ministries in protecting both products and consumers as well as increasing the unit price of natural milk with a raise of LBP 250 which will bring the price more in line with higher cost of living and increasing production costs.
Source: Al-Safir, Al-Diyyar, Al-Mustaqbal 24 October 2014

The Lebanon Investment in Microfinance (LIM) programme, funded by the USAID, organized yesterday a conference to launch a new microfinance federation that will bring together civil organizations and financial institutions under one umbrella so as to minimize cross-lending practices in this sector. The new association will include the Association for the Development of Rural communities, Association d’Entraide Professionelle, the Lebanese Association for Development (Al-Majmoua), the Lebanese Cooperative for Development, Entrepreneurial Development Foundation, Emkan Finance, IBDAA, Makhzoumi Foundation, and VITAS, which was formerly known as Ameen.
The executive director and head of the Banking Department at the Central Bank, Najib Shucair, noted in his keynote speech, that to date, the LIM program has awarded USD 8,299,501 in grants to Lebanese microfinance institutions, which in turn have disbursed a total value of USD 27,489,313 in the form of 12,101 micro loans, of which about 5,424 loans were destined to women borrowers. Shucair explained that as a result, the program had an impact on 18,989 jobs while helping to create 2,887 new employments, of which 45 percent were for women. In closing, Shucair underscored that 22 percent of the total microfinance clients, which reached have now 30,146 clients, have secured more than one loan, hence the idea to launch the above-mentioned Federation to pool the clients’ credit history in order to build a stronger sector and to improve the access of rural communities to finance.

Source: The Daily Star 23 October 2014

A memorandum of understanding (MoU) was signed, last Wednesday, between the Federation of the Bhamdoon Highlands Municipalities represented by its president, Yussef Chayya, and the implementation group of the Capacity Building Component of the European Union (EU). According to the MoU, the Federation will be expected to produce a strategy for strengthening local development for the local municipalities and villages through a participatory planning process.  The plan will include a number of action headings notably defining the future development direction for the Federation and its member municipalities, selecting one development project to incentivize medium and long terms growth and finally developing the capacities of the Federation so as to become self reliant at the evel of development planning.
Source: Al-Mustaqbal 23 October 2014

Al Diyar newspaper published last Sunday a report about the expansion and migration of Lebanese dining franchises into the GCC because of safe environment for investments and given the worsening security situation in Lebanon.  Commenting on the issue, the general secretary of the Syndicate of restaurants and coffee shops in Lebanon, Tony Ramy, noted that a number of renown Lebanese restaurants with a famous brand have moved outside Lebanon.  He added that 60 to 70% of large trademarked and franchised institutions are now open in GCC countries such as KSA, UAE, Bahrain, Qatar and Kuwait.  Furthermore, Ramy stressed that this expansion is positive as it secures additional income to Lebanese restaurants which will allow them to overcome the difficult domestic circumstances and will also help to market Lebanon outside.
In another vein, Ramy spoke about the problems that the sector is facing, notably in terms of food safety.  He regretted what the media has been spreading in terms of generalizations.  He also said that it is important that the directorate of consumers’ safety at the Ministry of Economy investigates the truth about any reports related to safety rather than leaving this matter to the media.  He added that some restaurants in Lebanon should be congratulated for their concern with food safety and should not be held responsible for the mistakes of others.
Source: Al-Diyar 20 October 2014

Al Ard – Lebanon, an association working on environmental protection and safety, organized during the second week-end of October, an environment day in Beit Shebab with the participation of more than 150 visitors who toured the natural sites and got to know the local arts and crafts including the Naffa3 Naffa3 bell making workshop which exists since the 18th century.  Visitors also inspected the environmental project for waste recycling which was set up a few years ago by five women, Mary Ghibril, Marnette Sharfeh, Khadija Hannoud, Amal Bitar and Athena Ghassoub, for the purpose of encouraging local residents to care about the environment.  Women from the recycling project deplored the general lack of interest regarding the environment and noted that it will be difficult to carry on with the recycling project in view of its cost.  They added that the assistance of the local municipal council was limited to a decision taken prior to elections authorizing them the usage of the plot of land to recycle waste but failed to meet any other recycling cost thus forcing women to cover these themselves.
Source: L'Orient Le Jour 17 Octobre 2014

Following the agreement last month by the Cabinet and the Ministry of Economy and Trade to collect this year’s wheat harvest, the process has finally started following the release of three memos addressed by the Ministry of Economy to wheat farmers across Lebanon in which he informed of the date and venue for delivering the 2014 harvest of wheat and barley.  The joint committees entrusted with this task including representatives from the Ministries of Economy and Agriculture as well as LARI began receiving the harvest in all Mo7hafazats under the supervision of the Director General of the department of grains and sugar and according to the following calendar: South Lebanon as of 15 October, North Lebanon 18 October and Beqaa 20 October.  For their part, wheat farmers called on the Minister of Economy to speed up the process of paying them for the harvest as well settling the agreed financial compensation set by Cabinet at LBP 50,000 per one dunum.
Source: Al-Nahar, Al-Safir 23 October 2014

The pottery exhibition center of Bkerzay reserve opened last week with the participation of a large number of local and foreign artists but with the noticeable absence of the traditional Lebanese pottery.  The director of the centre, Marianne Geada3, noted that invitations were sent to Lebanese traditional potters but they did not participate maybe because, according to her, they are not used to collective work or for other reasons.  Geadda3 added that pottery making in Lebanon is on the way to disappearing hence the importance of this project in protecting popular memory as well as safeguarding a traditional skill that has been thriving in Lebanon for thousands of years. She also stressed that pottery has now become a true form of art and is no longer a simple craft.  She further added that the Centre provides private lessons to those wishing to learn pottery and it targets youth to encourage them to engage in this sector and not be limited to banking and finance.  Moreover, Geada3 said that the work of the Centre will not only rely on exhibitions but will extend to the carrying out of activities within the Baaqline forests where hiking routes have been opened in collaboration with the local forest authorities and for the purpose of strengthening eco-tourism.
Source: Al-Safir 20 October 2014

As Safir newspaper published last Saturday a report on silk production in Lebanon including an interview with Michel Leon, the last general director of the “silk bureau” which was closed some 15 years ago.  Leon noted that turning the page on silk production in Lebanon was a non recoverable loss as this sector did not put any burden on the treasury but rather secured economic income as well as social results especially at the level of income for rural families as well as traditional handicrafts.  Leon noted that the silk bureau was created back in 1956 and played a distinct role in agriculture, industry and development, stressing that it was the first independent institution in Lebanon.  Leon further noted that this sector created jobs for rural people and encouraged them not to migrate to the cities, highlighting that raising silkworms takes only one month and absorbs masked unemployment especially amongst women as well as those retired and with delicate health.  He added that silk production used to be quite prosperous in many areas notably Baalbek and Hermel and was an alternative to illicit agriculture especially that the mulberry tree can grow in many climates and on non irrigated lands.  The report concluded by noting that Leon had sent a memorandum to the Minister of Agriculture on 15/6/2000, shortly prior to the closure of the Silk Bureau, explaining the environmental and economic importance of this sector, though to no avail and the Bureau was unjustly closed.
Source: Al-Safir 18 October 2014